Vilniaus Vingio Geba ceases the production of not promising deflection yokes.

The manufacturer of deflection yokes Vilniaus Vingio Geba, belonging to the     
Lithuanian electronic company Vilniaus Vingis, is losing the orders to          
manufacture the products, will cease its activity from 25April.                 

This decision was made by the only shareholder Vilniaus Vingis on Tuesday taking
into account forced idle time due to not lack of orders and not existing        
perspective of deflection yokes production.                                     
The prices being decreasing in the market of deflection yokes through the       
expansion of China and India manufacturers the production becomes not           
competitive branch of industry. Due to that the company's orders starting       
gradually to reduce from the year 2005. During the previous year 3.1 million pcs
of deflection yokes were sold or 47 percent less than in the year 2005. “The    
bankruptcy of Ekranas  had the significant influence  for the reducing of sales 
“ - Vilniaus Vingis AB  General Director Ms Neringa Menčiūnienė said.           

These reasons made dependent on reducing of the number of workers, which reduced
from 857 to 304 during the year 2006. The leaving relief amounted to 3.72       
million LTL was paid for dismissed workers. Gradually the workers were dismissed
during the first four months this year too. For them the relief of 0.85 million 
LTL was paid. Vilniaus Vingio Geba UAB is ceasing the activity, 138 workers     
retired from company, 1million LTL is foreseen to fix for leaving relieve.      

Acc. to Neringa Menčiūnienė during the past 1.5 month Vilniaus Vingio Geba UAB  
had only one customer  - color picture tube manufacturer Samsung from Hungary,  
which proposed conditions will lead the company to losses.                      

“ The orders being reduced and at the same time the production volumes, will be 
proposed to sell not used equipment, technological tools and other not used     
movable long and short terms capital. From the April 2007 the company will not  
get the incomes for building rent. However the money, got by building's selling,
made the possibility to settle up with banks and other company's creditors”  -  
N. Menčiūnienė said.                                                            
By her, the debts for creditors reach only 200 thousand LTL.                    
It is planning that during the first months of this year the sales of Vilniaus  
Vingis reach 8.5 million LTL. The profit of other activity, selling the         
compaay's real estate, will reach 43 million LTL. In the year 2007 is foreseen  
to get the profit of 17 million LTL before rating.                              

For additional information please apply to:                                     
Neringa Menčiūnienė  370 5 239 2500